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# South Africa: North Gauteng High Court, Pretoria
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[2023] ZAGPPHC 221
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## Kosmos Ridge Homeowner's Association v Maseko and Others
[2023] ZAGPPHC 221; 30085/09 (27 March 2023)
Kosmos Ridge Homeowner's Association v Maseko and Others
[2023] ZAGPPHC 221; 30085/09 (27 March 2023)
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sino date 27 March 2023
IN
THE HIGH COURT OF SOUTH AFRICA
(GAUTENG
DIVISION, PRETORIA)
Case
Number: 30085/09
(1)
REPORTABLE: YES / NO
(2)
OF INTEREST TO OTHER JUDGES: YES / NO
(3)
REVISED: YES / NO
DATE:
27/03/2023
In
the matter between:
KOSMOS
RIDGE
HOMEOWNER'S
ASSOCIATION
APPLICANT
And
PAUL MASEKO
TENTH
RESPONDENT
PAUL MASEKO N.O
ELEVENTH
RESPONDENT
JOSEPH RATLOI
TWELFTH
RESPONDENT
NOKO
SEANEKO
THIRTEENTH
RESPONDENT
In
Re:
IN
THE HIGH COURT OF SOUTH AFRICA
(GAUTENG
DIVISION, PRETORIA)
Case
Number: 30085/09
In
the matter between:
KOSMOS
RIDGE HOMEOWNER'S
ASSOCIATION
APPLICANT
And
MADIBENG
LOCAL MUNICIPALITY
FIRST
RESPONDENT
MEMBER
OF THE EXECUTIVE COUNCIL:
LOCAL
GOVERNMENT [NORTH WEST
PROVINCE]
SECOND
RESPONDENT
MINISTER
OF WATER AFFAIRS
&
FORESTRY
THIRD
RESPONDENT
SF
MOLOKOANE-MACHIKA
PMMAPULANE
FOURTH
RESPONDENT
MINISTER
FOR CO-OPERATIVE
GOVERNANCE
& TRADITIONAL AFFAIRS
FIFTH
RESPONDENT
THE
EXECUTIVE MAYOR OF THE FIRST
RESPONDENT
SIXTH
RESPONDENT
THE
MUNICIPALITY MANAGER OF THE
FIRST
RESPONDENT
SEVENTH
RESPONDENT
MINISTER
OF FINANCE
NINTH
RESPONDENT
In
Re:
IN
THE HIGH COURT OF SOUTH AFRICA
(GAUTENG
DIVISION, PRETORIA)
Case
Number: 30085/09
In
the matter between:
KOSMOS
RIDGE HOMEOWNER'S
ASSOCIATION
APPLICANT
And
MADIBENG
LOCAL MUNICIPALITY
FIRST
RESPONDENT
MEMBER
OF THE EXECUTIVE COUNCIL:
LOCAL
GOVERNMENT [NORTH WEST
PROVINCE]
SECOND
RESPONDENT
MINISTER
OF WATER AFFAIRS
&
FORESTRY
THIRD
RESPONDENT
SF
MOLOKOANE-MACHIKA
FORTH
RESPONDENT
P M
MAPULANE
FIFTH
RESPONDENT
MINISTER
FOR CO-OPERATIVE
GOVERNANCE
&
TRADITIONAL
AFFAIRS
SIXTH
RESPONDENT
ERICK
MATLAWE
SEVENTH
RESPONDENT
HD
MAKOBE
EIGTH
RESPONDENT
MPHO
POPPY MAGONGOA
NINTH
RESPONDENT
JUDGEMENT
MNYOVU
AJ:
INTRODUCTION
[1]
This is an application to seek relief holding the First, the Seventh,
the Eighth, the Tenth, the
Eleventh, the Twelfth and Thirteen
respondents in contempt of court order dated 18 July 2019.
[2]
The First, the Seventh, the Eighth, the Tenth, the Eleventh, Twelfth
and Thirteenth Respondents
are opposing this application and launched
a counter-application for rescission and setting aside of court
orders, and declaratory
relief. The respondents also seek condonation
for the late filing of its rescission.
BACKGROUND
[3]
The applicant initial launched the first notice of motion application
under the case number 20810/2004,
the 2004 application which was
heard before Judge Hartzenberg as (he was then) on 25 February 2005.
By consent between the parties
the Court issued Court Order which was
offer of settlement in tem1s of Rule 34 (2) and (5) made by the first
respondent in the
form of a written settlement offer dated the 4th
November 2004, the applicant named it ("Hartzenberg Order")
directing
the first respondent the first respondent to erect water
reticulation system, the drainage and processing of domestic water
and
sewerage waste according to the plans and directives of the
conditions of establishment and service agreement; construct five
cul-de-sacs
in the township according to General Plan No. A14405/98
as the aforesaid conditions and service agreement, and plant two
hundred
indigenous trees on the side walk in front of the township,
and first respondent to pay costs of the applicant. The applicant
also
seek committal of the first respondent's incumbents to prison
should the first respondent fail to comply with the order.
[4]
Since the granting of the Hartzenberg Order, the first respondent and
its officials and the applicant's
representatives engaged in
discussions on the implementation of the Order. Although the fomth
and fifth respondents having been
appointed to the management and
resumed their office duties in 2006 and 2007, and personally get
knowledge of the Hartzenberg Order.
On 1 March 2007 they were
involved in the discussions various meetings relating to
implementation of court order. Due to lack of
progress the applicant
looked for other suppliers to perform services of the first
respondent as per Court order. Be as it may,
from 2005 to 2009 the
applicant's attorney wrote thirteen letters to the first respondent
about the implementation of the court
order.
[5]
On or about February 2009, the applicant launched an application to
Court to sought an order directing
the fourth and fifth respondents
to join the first respondent in the proceedings in their official and
personal capacity, to comply
with the order due to non
compliance of the Hartzenberg Order. On 21 May 2009, the respondents
were served with an application
by the sheriff. The respondents
opposed the application and filed its late answering affidavit,
stating the reasons as to why it
cannot be able to implement the
Hartzenberg Order as per service agreement, and the steps they
undertook to satisfy the order.
The progress they have made in
implementing the order, their legislative framework, timeframes that
regulate the municipal legislation.
On or about 24 November 2009 the
application was postponed sine die directing the respondents to
obtain environmental authorisation
before construction of the
sewerage plant and report to the applicant's attorney and to
compensate it for claim of damages it suffered
by engaging services
of suppliers to erect sewerage and install plants.
[6]
On or about 2011, the applicant entered into an agreement with the
newly-elected first respondent's
executive mayor and municipal
manager by way of undertaking to comply with the Hartzenberg Order.
On 12 October 2011 the applicant
obtained a second Order which was
heard by Acting Judge Van der Bijl as he was then, based on a solemn
undertaking to comply with
the Hartzenberg Order. The respondents
failed to comply with 2011 order, namely Van der Bijl Order as well
including the obligation
to file progress reports.
[7]
On 14 February 2012 the applicant filed a further application
requesting for the newly executive
mayor and the municipal manager to
be joined in the 2009 application, however, the first respondent
opposed the application. On
07 March 2012 the first respondent's
officials held meeting with applicant's attorneys to provide proof of
budgetary approval and
tender process, and no results forthcoming
from those meetings. On or about 2013 the applicant sued the first
respondent for damages
emanating from its failure to comply with the
court orders including monthly rental of the sewerage plant, on 06
June 2014 the
court grant the applicant relief on the civil claim for
damages against the first respondent in monetary claims to the sum of
Rl
064 052, 20 plus costs.
[8]
Despite successfully obtaining the relief from the court, on 12
November 2014 the applicant further
wrote letters to the ministers
including the ninth respondent fully explaining its plight and the
environmental risks caused by
the first respondent's refusal to
comply with orders of court and due to the quick succession of office
bearers and provincial
intervention to this matter, and how it has
been difficult to prove a case of (mala.fide) contempt and to enforce
compliance under
the threat of imprisonment.
[9]
The first respondent with its officials kept on attending meetings
with the applicant to address
the impasse, however, no progress with
the implementation of court orders until the first respondent was put
under administration
in January 2016.
[10]
On 30 November 2016, the Auditor -General issued an unfavourable
report on the affairs of the first respondent,
which caused the
applicant on 16 June 2017 to institute second claim of damages
against the first respondent where the parties
agreed to a meeting to
settle the matter. On 30 June 2017 the Auditor -General reported that
the first respondent had an unresolved
balance of irregular
expenditure to the amount of R 9 000 000.00 as such the key projects
such as water infrastructure and sanitation
were affected.
[11]
On 15 December 2017 the applicant instructed its attorneys to address
a letter to the National Treasury to
ringfence R15 000 000.00 of the
funds allocated to the first respondent in terms of Division of
Revenue Act 3 of 2017 (DORA) in
order to ensure that the first
respondent fulfils its obligations in terms of
Hartzenberg Order
and
Van der Bijl Order.
Without success the applicant could
not get relief as it was advised on 12 January 2018 that the Deputy
-Director was not legally
competent to accede to its request.
[12]
On 22 January 2018 the default judgement against the first respondent
in the second civil claim to the amount
of R874 700.00 plus interest
and costs was granted, which meant that the first respondent failed
to fulfil the agreement. This
led to the applicant to file a
supplementary application relief on 12 February 2019 including to
join Seventh, Eighth and Ninth
respondents, the Ninth respondent
opposed the application, however, the Court order 18 July 2019 to
join them was issued by the
court.
[13]
On the same breath on 18 July 2019 the proceedings between the
applicant and ninth respondent was postponed
sine die by Judge
Neukircher.
THE
ISSUES REQUIRING DETERMINATION
[14]
Whether the relief sought in prayers 1,2,3,4,5, (with its
sub-paragraphs), 6,7,8 (with its sub-paragraphs),
9 and 10 of the
Applicant's application dated 5 May 2021 must be granted
[15]
Whether the relief sought by the Respondents in the
counter-application, must be granted, namely the setting
aside of the
Court Orders and the dismissal of the Contempt application dated 5
May 2021.
MAIN
APPLICATION : 5 MAY 2021
[16]
As alluded in paragraph 1 above, this application is intended to
exact compliance with 2019 Cow-t Order.
[17]
".........the corollary duty borne by all members of South
Africa -lawyers, laypeople and politicians
alike- is to respect and
abide by the law, and court orders issued in terms of it, because
unlike other arms of State, courts rely
solely on the trust and
confidence of the people to carry out their constitutionally-mandated
function"
[1]
[18]
The applicant contends on his founding affidavit that this
application is brought in terms of Paragraph 14 of an
Neukircher
order
which states that:
" The applicant will
at anytime be entitled Lo approach this court under this case number
on the same papers suitably amplified
any supplementary relief that
it may regard necessary and such supplementary relief may include
seventh and eighth respondent to
appear before this court and to
advance reasons why they should not be imprisoned pending compliance
with the court order".
[19]
This matter concerns the question whether the opposing respondents
are guilty of contempt of court for failure
to comply with the order
made on 18 July 2019 by Neukircher J, referred as (“
Neukircher
oder
”). this order was preceded by two other orders namely
that
Hartzenberg Order
, the 2005 order and
Van der Bijl
,
the 2011 order.
[20]
The applicant contends that the common factor in respect of these
orders is that the first respondent was
ordered to erect sewerage
treatment station in applicant's township. Both the 2005 and 2011
orders were issued by agreement between
the applicant and the first
respondent, and the first respondent did not oppose the issuing of
Neukircher order. Until to date
the first respondent and its
accountable senior office bearers have not complied with these three
court orders.
[21]
The applicant initiated these summary contempt proceedings against
the respondents as a result of failure
to comply with the 2019 July
court orders, and further contends in founding affidavit that, the
Neukircher order in paragraph 3
declares the first respondent to be
in contempt of the orders of 2005 and 2011. Then paragraph 4 places
obligations on the Seventh,
Eight, Twelfth and Thirteenth
respondents, and paragraph 5, 7 to 13 place obligations on the first
respondent. All these obligations
place matters on the first
respondent 's council and mayoral executives committee, to file
progress reports to the allocation of
funds, apply for the required
water licence, environmental authorisations before the erection of
the treatment plant start. However,
the opposing respondents denied
being in contempt of this 2019 order.
CONDONATION
[22]
The respondents have launched an counter -claim application to set
aside the court orders on behalf of the
first respondent, they seek
condonation of the late filing of counter application, to rescind the
2005, 2011 and 2019 court orders
that form the subject of this
application.
[23]
The applicant opposes the condonation of the late filing of the
rescission and counter claim application,
on the basis for the
past sixteen years, the first respondent disregarded the applicant's
correspondences, and would not honour
its obligations. It was
contended by the applicant that the first respondent since the
inception was aware of the 2004 application
together with the
respondents, and decided not to oppose the application, the first
respondent never took any action to have the
court orders rescinded,
the applicant contended that a distinction must be drawn between the
first respondent and the opposing
respondents, the first respondent
indeed will be prejudiced if condonation is not granted but such
prejudice will be justified
and no complex and weighty issued
involved in counter-claim as the respondents misunderstood the 2005
order. Therefore, condonation
application should be dismissed with
costs as they were no reasonable reasons for the respondents to
revisit the 2005 and 2011
orders.
[24]
The thirteenth respondent, Mr Noko Seanego, an Acting Municipal
Manager at first respondent's employ deposed
the answering affidavit
on behalf of the first, seventh and eighth respondents in which he
explained the reasons for delay. The
thirteenth respondent contended
that the first respondent was put under administration, as soon the
previous officials became aware
they then immediately held meetings
with the applicant with the view to resolving this matter, as their
predecessor's during investigations
discovered in the Service
Agreement that the terms imposed to first respondent the duty to
erect the sewerage system were on the
Developer. They sought
consultations with the applicant on that issue and invited the
applicant to make representations why the
first respondent should be
liable for the construction of the plant, in the light of the Service
Agreement, and that such critical
information will be canvassed to
seek legal opinion.
[25]
The thirteenth respondent further submitted that the first respondent
will suffer great prejudice if the
late filing of the rescission
application will not be condoned, as the applicant will not suffer
any prejudice, the respondents
will have to ventilate to this court
their constitutional authority and how to use their resources, a
determination of the duties
and functions of the first respondent be
made. The refusal of the condonation will force the first respondent
to incur millions
of rands for the benefit of private estate, in
circumstances where the majority of the inhabitants of the first
respondent do not
have water and sanitation
[26]
The counsel for the respondents argued that when the new
administrator was appointed in December 2020, and
the thirteenth
respondent was appointed in January 2021 they became aware of the
existence of the 2019 court order. The applicant
was aware of the
date the new officials commenced their duties and they accepted that
in this regard, in view of the late stage
at which the tenth to
thirteen respondents have commenced their duties 7 December 2020, 9
April 2021 and January 2021 respectively,
the court should focus on
respondent's non-compliance with the 2019 order and that it acutely
aware of the fact that the opposing
respondents have been in the
office for a relatively short period. On this basis, the opposing
respondents arranged for a rescission
to be filed on 27 January 2021
as part of counter-claim in the damages claim, in response to the
claim of rescission, the applicant
filed an exception and contended
that such relief should be sought by way of an application not an
action, and explanation for
delay should be set out on an affidavit.
[27]
The counter-claim was then launched in June 2021 pursuant to the
determination of the exception. The counsel
then submitted that this
application was brought within a reasonable time, as represented by
the current administration, should
the court find that there was an
unreasonable delay they submit that such delay stands to be condoned
having regard to the invalidity
of court orders issued, the interest
of justice, and that the matter raises importance of a constitutional
nature. It is thus necessary
that the merits of the matter be
determined on full facts and correct pronouncement of the law, the
counsel relied on the case
of
Van Wyk v Unitas Hospital &
Another
[2007] ZACC 24
;
2008 (2) SA 472
(CC) in that the standard for condonation
is the interest of justice and depends on the facts and circumstances
of each case.
[27]
The counsel for the respondents further submitted that the rescission
is sought as a reactive challenge,
as the applicant seek to enforce
the court orders, which are unenforceable due to provisions of
governing prescripts, the first
respondent has good prospect of
success to challenge the lawfulness of the court orders and the
rescission seeks to ensure that
the rule of law is upheld and that
the first respondent exercises its powers in accordance with the
empowering provisions, the
respondents submitted that for these
reasons set above, the first respondent has good prospects of success
in this matter, particularly,
having regard to the legislative scheme
and absence of legal foundation for the court orders.
[28]
Although the explanation could be rightly criticised for degree of
lateness, it is my view that the respondents
do explain the delay,
the question is whether the delay was reasonable or not. Applicants
for condonation are required to meet
two requisites of good cause
shown before they can succeed in such an application. The first
entails establishing a reasonable
and acceptable explanation for the
non-compliance with the rule(s) in question and secondly satisfying
the court that there are
reasonable prospects of success on merits of
the case, that the applicant must show that his bona fide defence is
not patently
unfounded and that it is based upon facts proved, if
proved , would constitute a defence, and the grant sought must not
prejudice
other litigants as a result of the non-compliance, last but
not least, the convenience of the court and the avoidance of
unnecessary
delay in the administration of justice. The application
must be lodged without delay, and must provide a full detailed and
accurate
explanation for it.
[2]
[29]
It is my considered view that since the first respondent has been
under administration for quite a long time
from 2016 until now, this
raise a concern as they have been many succession of official bearers
controlling the first respondent's
administration, its duties and
powers have been compromised, due to short time they have been
occupying the offices, in light of
the nature of these proceedings
and the serious consequences, one of the factors that must be
considered whenever the condonation
is sought is the applicant's
prospects of success on the merits, it must be borne in mind that the
grant or refusal of condonation
is not a mechanical process but one
that involves the balancing of often competing factors. The first
respondent's prospects of
success on merits are strong in the
services agreement, that must be guided by the legislative governing
prescripts, the first
respondent as an organ of the state is
constrained by the course and scope of governing prescripts, the
interest of justice in
the light of first respondent's prospects of
success, require condonation be granted, and the issues pertaining to
this matter
be placed before court and be ventilated on the doctrine
of legal principles.
CONTEMPT
OF COURT and LAW
[30]
The requirements for contempt of court are trite and are the
following:
30.1 the
existence of the order,
30.2 the
order must be duly served on, or brought to the notice of the alleged
offender;
30.3 there
must be non-compliance with the order; and
30.4 the
non-compliance must be wilful and mala.fide
[3]
[31]
The standard of proof which must be applied in applications for
contempt of court order was stated by the
Constitutional Court in
Matjabeng local Municipality v Eskom ltd and others
2018 (1) SA 1
(cc) as that for an order of contempt where committal is sought the
standard of proof beyond reasonable doubt applies.
[32]
In Fakie N.O v CC11 Systems (Pty) Ltd, the requirements for wilful
and mala.fide were stated thus :
"[9] The test for
when disobedience of a civil order constitutes contempt has come to
be stated as whether the breach was committed
deliberately and mala
fide . A deliberate disregard is not enough, since the non -complier
may genuinely albeit mistakenly believe
him or herself entitled to
act in the way claimed to constitute the contempt. In such a case,
good faith avoids infaction. Even
a refusal to comply that is
objectively unreasonable may be bona.fide (though unreasonableness
could evidence lack of faith;
[10] These requirements
-that the refusal to obey should be both wilful and mala fide , and
that unreasonable non-compliance, provided
it is bona fide, does not
constitute contempt-accord with the brander definition of the crime,
of which non-compliance with civil
orders is a manifestation. They
show that the offence committed not by mere disregard of a court
order, but by the deliberate and
intentional violation of the court's
dignity, repute or authority that this evinces. Honest belief that
non-compliance is justified
or proper is incompatible with intent".
[33]
ln casu, it is common cause that the order of 18 July 2019 is in
extant and ordering the respondents to be
joined in these
proceedings, be declared that they are in contempt of 2019 court
order, and should they fail to comply the incumbent
be committed to
prison. I am of the view that for the respondents to be joined in the
proceedings by this court where committal
is sought, the standard of
proof beyond reasonable doubt should apply as well their wilful and
mala fide should be demonstrated
after the 2019 order was served on
them.
ARE
THE REQUISITES OF CONTEMPT ESTABLISHED
[34]
Save for a denial of contempt of court orders, for reader's
convenience, the applicant's summary is as follows:
-
34.1 The
first and opposing respondents fail and refused to comply with
prayers 4, 7, 7.1, 11, 13, 13.1 ,13.2 and 13.3
of the
Neukircher
order
, the 2019 Court order, the first respondent has breached it
legal duty in terms of services agreement and ordinances.
34.2 The
first respondent's officials acted wilful and mala fidei and adopted
cavalier attitude towards court orders,
it is conspicuous that the
aforesaid respondents have deliberately disobeyed the 2019 court
order and their conduct undermines
the Constitution of SA and rule of
Jaw. As much the applicant is aware that the opposing respondents
have the short term in the
office and the high frequency of senior
office bearers this is a problem that frustrated the applicant in its
attempt to enforce
the court orders by instituting contempt
proceedings against certain individuals, in this instance matters are
coming to a head,
albeit, under threat of punishment.
[35]
According to the applicant, he found it necessary to state events of
what happened after the Neukircher order
was granted, in that on 30
August 2019 the first respondent and its senior office bearers were
formally served respectively, and
on 13 September 2019 the
applicant's attorney dispatched letter to the first respondent
summarising the contents and obligations
of the order, and the
consequences should they fail to comply with the order. Despite
several letters addressed to the first respondent
and its official,
applicant received no response. On 09 November 2019 the applicant put
attention to the first respondent prayer
4 of the order, that they
must put the three orders to their agenda on the next meeting, the
first respondent's office bearer confirmed
that the three orders
would be placed on the agenda for the next council meeting of 25
February 2020, however, with the reasons
unknown to the applicant,
the three orders were never placed in any agendas as required by
Neukircher order , and not any attempt
since 2019 order to comply
with the most basic and non-financially impacting on the prayers By
so doing, the first respondent and
its officials place itself in
wilful and mala fide .
[36]
The applicant further contended that on 11 December 2019 a meeting
was held between the parties, for the
purposes of considering the
matter and it was agreed that the respondents will file interim
report by mid-February 2020 and the
final report by no later than 20
March 2020. The meetings did not go further as the respondents
addressed the letter to the applicant
about "Discovery" on
the service agreement. The applicant's counsel submitted that it was
the third contempt application
against the first respondent following
its persistent failure to comply with 2005 and 2011 orders.
[37]
The counsel for the applicant submitted that the opposing respondents
have shown their mala fide, even though
the tenth and thirteenth
respondents had been in the office for a short period the frequency
in changes among the first respondent's
senior personnel had been
frustrating factor in contempt proceedings, the applicant cannot
accept that office bearers of their
seniority and presumed experience
are serious in presenting an argument of voidness of court orders
which is so absurd. They have
failed to place the 2019 order on the
agendas of the council and the mayoral committee, the first
respondent has been notorious
for its poor service delivery, and
financial and administrative incompetence. It was argued that the
first respondent and its opposing
respondent's failure to comply with
the 2019 court order is unconstitutional conduct and that the
contemptuous nature thereof was
even more so unconstitutional as
intended in s172(1)(a) of the Constitution.
[38]
The counsel for the applicant submitted that the officials such as
opposed respondents as they are targeted
for contempt relief, must be
joined in their personal capacities and not in their nominal official
capacities, the applicant relied
on
Matjhabeng-supra
at para
103, and further relied at p46-55 and 67, which states that:- for
civil remedies for contempt of court such as declaratory
relief,
mandamus or a structural interdict that do not have the consequences
of depriving an individual of their right to freedom
and security of
person, the civil standard of proof, namely, proof on a balance of
probabilities applies, and where civil contempt
remedies of committal
or a fine is the relief sought, it has material consequences for an
individual's freedom and security of
person. For such relief the
criminal standard of proof, namely beyond reasonable doubt always
applies. Therefore, in this case
the counsel for applicant submitted
that the requirements of an order, service or knowledge thereof d non
-compliance have been
proved, accordingly the respondents herein
carry the evidentiary burden to establish a reasonable doubt
regarding wilfulness and
mala fides
-Zuma-supra
at par
37.
[39]
It was argued by the applicant's counsel that the respondent's
defences cannot create a reasonable doubt,
as its functionaries
cannot create a bona fide defence raised herein. He further argued
that their longwinded explanations of attempts
to negotiate with
applicant clearly are intended to raise doubts and are clearly
moulded upon the findings regarding municipal
officials in their
positions as discussed in
Matjhabeng-supra
, and further
it was clear that in contempt of court applications against officials
occupying the positions of the tenth and thi1teen
respondents, must
be cited in their personal capacities in contempt proceedings, the
lack of bona.fides.and showing the mala fide
and intentional
non-compliance with specifically 2019 order, when they failed to
place the 2005, 2011 and 2019 orders on the agenda
of the mayoral
committee and the council of the first respondent. Instead, the
officials alleged that the first respondent was
in financial
constraint, the counsel argued that if there were issues with non
compliance or inability on grounds of financial
difficulties, the
opposed respondents would have approached the court for relief, the
purported ground of avoiding compliance with
the 2019 order based on
constraints is a fallacy and not a defence.
[40]
The respondents denied to be in contempt of the
Neukirclter order
,
in the founding affidavit, their contentions are that the
requirements for contempt of court were not met by the applicant, the
first respondents summary is as follows:-,
4.1 No Valid and Binding
order because the court orders are not in conformity with the law,
the 2019 order is void ab initio a pa1ty
cannot be in contempt of
such order.
40.2 No Mala
Fide conduct by the respondents in that, the counsel of the first
respondent submitted that the fust respondent
was placed under
administration since March 2010, and new officials were elected
pursuant to local government elections of May
2021. The thirteenth
respondent presented the tabling report by Tebogo Mothlashuping (an
ex -official) with the officials who occupied
the first respondent's
office prior his appointment in January 2021, the thirteenth
respondent mentioned that there have been 5
Municipal Managers who
occupied the office. Therefore, it cannot be said that its
administration was mala fide.
40.3 The
counsel further submitted that during the periods October 2019 and
December 2020 the first respondent was led
by Administrator
Motlogelwa, Mr Church the Acting Technical Director and Mr Maape, the
Acting Municipal Manager, they were served
with 2019 order and were
bound to investigate this matter and to consider the services
agreement and the governing prescripts,
the administrators together
with a new intervention team comprising of technical, financial,
governance and administration experts
conducted its investigation and
then discovered that the service agreement imposes the duty to erect
the sewerage system on the
Developer and not on the Municipality. The
applicant was informed of the developments on 14 February 2020 and
invited to make representations.
40.4 Upon the
thirteenth's respondent appointment in January 2021, the opposing
respondents contended that they were
made aware of the 2019 order,
and that the 2019 order inter alia replaced the orders set out in the
2005 and 2011orders, which
meant that any alleged contempt will be
assessed on 2019 onwards. The 2019 order stated that the first
respondent should follow
the prescripts of its supply chain
management policy to procure the erection of sewerage plant. Despite
this when the opposing
respondents filed the counterclaim seeking
clarity on an important issue of the law, it was submitted that on
this basis there
is no or have never been mala fide conduct on the
opposing respondent.
[41]
The counsel for the respondent argued that the applicant has failed
to prove its case beyond reasonable doubt
for the contempt of court,
it is trite that, an applicant must establish that an order was
granted against the alleged contemnors,
and the contemnor was served
with the order and had knowledge of it, the alleged contemnor failed
to comply with the order.
[42]
It was further argued by the counsel in its arguments that in the
present case, the July 2019 court order
which the applicant seeks to
enforce was never granted to any officials which are alleged to being
in contempt, all the individuals
sought to be joined commenced their
duties with the first respondent after court orders had been issued.
As such neither of them
were cited on the May 2021 application and
others have left the first respondent's employ, therefore no proper
case has been made
out for the joinder of the respondent in their
personal capacities, that the respondents concerned are present
incurnbers charged
with obligation to ensure the first respondent's
compliance with the cou11 order, as well no proper case has been made
out for
the contempt of court order
[43]
The counsel for the opposing respondents further submitted that the
respondent's bona fides were indicated
by the fact that there has at
all material times been a change in the leadership of the first
respondent as a result of multiple
provincial interventions.
[44]
This application was brought by the applicant as supplementary relief
granted on the July 2019 order which
supplementary relief may include
seventh and eighth respondent to appear before this court and to
advance reasons why they should
not be imprisoned pending compliance
with the court order. It is for these reasons that the respondents
have to demonstrate standard
of proof beyond reasonable doubt in
applications for contempt of court, should the respondents fail to
discharge standard or evidentiary
burden, contempt will have been
established.
[45]
The applicant has proved to this court that he served the 2019 order
to the first respondent and the previous
officials who are no longer
in the employ of the first respondent on 30 August 2019, the
applicant admits that the present official
whom they want to join in
this application were not personal served with the 2019 court order,
further does not dispute that the
present official whom they want to
join in these proceedings, they resumed their duties from December
2020 and January 2021 and
they did attend the meetings immediately
they get knowledge of the 2019 court order.
[46]
The opposing respondents whom are to be joined in these proceedings
and be held liable for being in contempt
of the 2019 order did
establish beyond reasonable doubt that their conduct as from
resumption of their duties December 2020 and
January 2021 until to
date was not wilful and mala fide , the counsel for the respondents
submitted that from the onset, the respondents
did not simply ignore
the court orders, but that at all material times they were engaged
with the applicant, and taken necessary
steps to assist the applicant
in ensuring that the developer performs its duties in accordance with
the services agreement.
[47]
In law, civil contempt is a form of contempt outside of the court, it
refers to contempt by disobeying a
court order
[4]
.
Civil contempt is a crime. Civil contempt can be prosecuted in
criminal proceedings, which characteristically lead to committal,
but
committal for civil contempt can also be ordered in civil proceedings
for punitive or coercive reasons
[5]
.
[48]
Civil contempt proceedings are typically brought by a disgruntled
litigant aiming to compel another litigant
to comply with the court
order granted in its favour, when the contempt occurs, a court may
also initiate a contempt proceedings
mero motu
[6]
.
[49]
Typically, a coercive contempt order calls for the compliance with
the original court order that has be breached
as well as the terms of
the subsequent contempt order. A contemnor [the person in breach of
complying with the court order] may
avoid the imposition of a
sentence by complying with a coercive order. By contrast, punitive
orders aim to punish the contemnor
by imposing a sentence which is
unavoidable.
[50]
Contempt of court is not an issue between the patties, but rather ru1
issue between the cow-t and the party
who has not complied with a
mandatory order of court
[7]
.
[51]
In Victoria Park Ratepayer's Association Greyvenouw CC 2004 JDR 0498
(SE) at paras 5, 26-27 the apex Court
explained that:
"[C]ontempt of court
has obvious implications for the effectiveness and legitimacy of the
legal system and the judicial arm
of government. There is thus a
public interest element in each and every case in which it is alleged
that a party has a wilfully
and in bad faith ignored or otherwise
failed to comply with a court order. This added element provides to
every such case an element
of urgency". And
"it is only the
object of punishing a respondent to compel him or her to obey an
order that renders contempt proceedings urgent:
the public interest
in the administration of justice and the vindication of the
Constitution also render the ongoing failure or
refusal to obey an
order a matter of urgency".
[52]
This is my view, is the starting point: all matters in which an
ongoing contempt of an order is brought to
an attention of a court
must be dealt expeditiously as the circumstances, and the dictates of
fairness, allow". The coercive
order only incidentally
vindicates the court's honour.
[53]
"Contempt of court is not merely a means by which a frustrated
successful litigant is able to force
his or her opponent to obey a
court order. Whenever a litigant fails or refuses to obey the order
he or she thereby undermines
the Constitution. That, in tum, means
that the court called upon to commit such a litigant for his or her
contempt is not only
dealing with the individual interest of the
frustrated successful litigant but also, as importantly, acting as
guardian of the
public interest
[54]
I am persuaded by the respondent's counsel's submissions that the
applicant did not satisfy all the requirements,
neither of the
opposing respondents were personally served with the 2019 cou11
order. The 18 July 2019 order is in extant, it was
served to the
first respondent on 30 August 2019, it cannot be denied that at the
time the first respondent was under administration
in terms of
section 139 (1) (b) of the Constitution, same is supported, by notice
of provincial intervention. It is unfortunate
that the applicant
decided to launch the application which was never opposed by the
first respondent . The same order was attended
to but not fully with
complied by the then first respondent's officials as at the time, it
was alleged to be unenforceable by the
first respondent, in terms of
Section 19(1) of the Municipal Finance Act 56 of 2003.
[55]
It is the above circumstances that this court could not find the
alleged contemnors to be in contempt of
the 2019 order, in their
duties and in their personal capacity. The non compliance cannot
be said it was intentionally deliberate
to ignore the 2019 court
order, they refused to obey the 2019 order, in all fairness their
participation from the onset the had
the knowledge of the 2019 , from
December 2020 they acted accordingly to the governing prescripts with
the knowledge of the applicant,
it should be borne in my mind that
these respondents are acting on behalf of the organ of the state,
which is being govern by the
rule of law, the applicant also admits
that there was compliance partly on the 2019 Order, however, some
could not be achieved
because the first respondent being the organ of
the state governed by its statutory rules, and was under
administration, this court
cannot find any unconstitutional conduct
on the alleged contemnors in terms of section 172(1) (a) of the
Constitution.
RESCISSION
IN TERMS OF RULE 42 (1) (a)
[56]
The opposing Respondents in the main action are the Applicants and
the Applicant is the respondent in this
rescission of court orders,
for the sake of convenience the parties the parties in reconvention
will be referred to as they are
in convention.
[57]
ln terms of common law, and or/Rule 42 (l)(a) of the Uniform Rules.
This rule refers only on judgements or
orders in which there was a
procedural error and where a party was absent, when the order was
granted on summons that did not disclose
a cause of action, it was
legally incompetent for the court to make the order, a judgement to
which a plaintiff is procedurally
entitled in the absence of the
defendant, cannot be said to have been granted erroneously, in light
of subsequent disclosed defence
[8]
.
[58]
Once it is shown that the order was erroneously sought or erroneously
granted, the court will usually rescind
or vary the order. A party
need not show good cause, this rule may be invoked in circumstances
where material facts were withheld
from, or deliberately
misrepresented to the court or where an order was sought without
notice to the interested party
[9]
[59]
The opposing respondents submit that the 2005, 2011 and the July 2019
Court orders must be rescinded they
were erroneously granted in a
number of aspects, the court orders cannot be complied with without
determination of merits and they
are in contravening the governing
prescripts and thus falling foul of the rule of law, further the
Constitution and the Rule of
law prohibits the court from issuing
court orders that are contrary to/or violate the law, the three
orders were unlawfully, improperly
and irregular granted, and the
counsel for the respondents further submitted that there is an
exception to the general rule that
advocates for finality of orders
to be rescinded under the Rule 42.
[60]
It is trite that an application for rescission of court order must
succeed under Rule 42(1) (a) if an applicant
can establish an error
in the proceedings, the applicant does not require to establish good
cause and a bona fide defence. Whether
a cou11 is confined to the
record of proceedings in deciding whether a judgement or order was
erroneously granted, the court is
entitled to consider facts not on
the record, and of which the court granted the order had been
unaware, the court may, in addition
to any other powers it may have,
mero motu or upon the application of any party affected, rescind or
vary, an order or judgement
is erroneously sought or erroneously
granted in the absence of any patty affected thereby
[10]
.
[61]
In Bakoven Ltd v GJ Howes (Pty) Ltd
1999 (2) SA 466
(E) Erasmus J (as
he was then) held at 471F-H that Rule 42 (1)(a) of the Uniform Rules
of Court is a procedural step designed to
correct expeditiously an
obviously wrong judgement or order. He stated that an order or
judgement is ··erroneously
granted" when the court
commits an ''error" in the sense of a "mistake in a matter
of law appearing on the proceedings
of the court of record."
‘
[62]
It is also important for this court to have regard to the averments
contained in the affidavits filed of
record in deciding whether the
orders were erroneously granted. The respondents contended that at
the time when the court orders
were made, the court was unaware of
the facts and the governing prescripts, that the first respondent was
obliged to comply with
empowering provisions relating to sections
118(l)(a) and (b), s118 (2)(a) and s119(1) Ordinance, the Notice and
the Services Agreement,
si(c) of the Constitution, s19(1)(a) of the
MFMA and the SCM policy. And should the court that granted the orders
was aware, it
would have seen that the obligations which it imposed
on the first respondent in terms of services agreement violated the
governing
prescripts, and cours powers to issue court orders are
constrained by the rule of the law.
[63]
The thirteenth respondent submitted that the applicant failed to
disclose the ordinances, material facts
in the 2004 application, the
applicant failed to disclose in its founding affidavit the duties and
responsibilities of the first
respondent and those of the developers
that arise from the development of private estate such as Kosmos
Ridge. The court order
was contrary to the governing prescripts, they
were issued without determination of the merits in that following,
upon the proclamation
of township, section 116 of the Ordinance
provides for necessary internal and external engineering services in
a development. The
internal services, which are the responsibility of
the development, are those inside the boundary of the development
such as road,
storm water, water and sewerage. The respondent further
submitted that the first respondent should have never consented to
the
2005 order regard inter-alia, to the fact that, services
agreement provided that the developer has to install the sewerage
treatment
plant, and the township is private initiative by the
developer who became township owner and therefore remains responsible
towards
the applicant members to have complied with its obligation.
[n the premises, the applicant's omission of those facts in its
founding
affidavit violated the governing prescripts as per services
agreement, the plaintiff simply demand services without the
obligation
to pay for the same, such demand is unconstitutional and
bad in law. The project thus fall under capital project as they
demand
the first respondent to budget for their private estate which
is against the law.
[64]
The thirteenth respondent further contended that the 2011 order
should be rescinded, it is invalid and in
contrary to governing
prescripts, as the first respondent's powers and functions are
accordingly constrained by the course and
scope of these prescripts ,
it
cannot
do anything that is in conflict with these prescripts , as these
accords with the principle of legality, the respondents
further
submitted that the previous mayor and the manager undertook to signed
the undertaking that was made an order of the court
without the
authority of the first respondent's Council, the latter who is the
functionary that has the authority to decide whether
to undertake the
capital project based on its budget. The respondents denied that the
first respondent gave its attorney an authority
to make an offer of
settlement in terms of Rule 34(2), there was no acceptance of the
offer by the applicant, and is not incorporated
into the Order, the
respondents submitted to this court that Offer was based on error of
law and incorrect legal advice. The respondent
further submitted that
the first respondent's delegation of authority lies with the Council,
unless specifically delegated. In
the premises neither the attorney,
nor Manager and the Mayor were delegated in this matter.
[65]
The respondents then relied on the case
of Valor IT v Premier,
North West Province And Others
2021 (1) SA 42
(SCA) where a
settlement agreement was concluded by an organ of state in
contravention of the governing prescripts, such agreement
was made an
order of the court, when the Valor IT sought to enforce the court
order the Department applied for a counter-application
to rescind the
court order, on the basis that the agreement was inconsistent with
Constitution and the governing prescripts. The
court rescinded the
order.
[66]
The respondent's counsel on its argument further relied on the recent
case delivered on 11 March 22 under
Case No. 3782/ 2020 at LMPHC, of
Minister of Justice v Limpopo Legal Solutions
where rescission
of a consent order in such circumstances was recently considered,
however, it is disputed as it was argued by
the applicant that the
first respondent was represented by the attorneys who made an offer
of settlement with the consent of the
first respondent.
[67]
The counsel for the respondents argued that all these orders must be
set aside as they were granted without
the determination of merits as
such this matter falls under the exceptions to the general rule that
advocates for finality of orders,
as the Rule 42 accordingly creates
that exception, and relied on the case of
Freedom Stationery (Pty)
Ltd & Others v Hassam & Others
which in summarily stated
that such a judgement can only be set aside on the ground of fraud or
, in exceptional circumstances,
on the grounds of Justus error or the
discovery of new documents A default judgement, on the other
hand, may be set aside
;n terms of Uniform 31(2)(b), rule 42 or the
common law.
[68]
The counsel for the respondent argued that the first respondent has
never accepted the validity of the court
orders as indicated by the
applicant in its replying affidavit of the counterclaim, the
respondent stated that contrary to the
answering affidavit filed by
Mr Mapulane in 2009 application, he strenuously submitted that 2005
court order was contrary to governing
prescripts, and that it was
ought not to have been issued in the first place. The Mapulane's
answering affidavit did challenged
the validity of the court order as
the previous administrators were incorrectly advised as such the
order was to be revisited at
the belated stage, the counsel argued
that the first respondent explored ways in which it could resolve
this matter, by appointing
administrative intervention teams to
analyse the needs of the first respondent and to decide how best to
resolve them, not the
decision of the erstwhile administrators. but
not accepting the validity of the court orders, the counsel further
submitted that
this is where it was decided that arbitration
proceedings should be conducted with the developer in terms of the
services agreement.
The respondent denies that the arbitration
proceedings were for the first respondent to erect a sewerage plant,
as this was for
the developer's duty and the capital project.
[69]
The counsel for the respondents concluded that having regard to the
fact that the cou1t orders in question
were erroneously granted as
pleaded, and submitted that the first respondent does not have to
show good cause for the orders sought,
on the other hand, it has
shown cause for rescinding the court orders, and be set aside. The
interest of justice and policy considerations
applicable to the
matter warrants that this court should rescind the court orders. Last
but not least, the respondent submitted
that for reasons set out
above relating to invalidity of the court orders, the first
respondent does have a bona fide defence on
the merits of the main
application brought against it, having regard to the fact that that
there is no statutory or contractual
obligation on the first
respondent to erect a sewerage system on the private development, the
applicant has failed to formulate
source of duty, no case is made out
in the 2004 applicant's founding affidavit for the relief that was
granted by the court.
[70]
However, the applicant denied that 2005 order was granted erroneously
and improperly, based on the fact,
that the 2004 proceedings were
instituted and the first respondent was held liable because of having
breached its legal duty in
terms of Ordinance and services agreement,
the 2005 order was granted as a result of an offer of settlement in
terms of Rule 34(2)
and (5) made by the first respondent in the form
of a written settlement offer dated the 4th November 2004. In that
breath the
applicant submits to this court that the whole defence and
whole counterclaim of opposing respondents are spurious, mala fide
and
devoid of any merit at all, the respondents are attacking the
validity of the 2005 court order instead of complying with it, which
is against the law, as such its opposition should be dismissed with
punitive costs.
[71]
The applicant contends that in tem1s of 2011 court order first
respondent's attorney, had an authority to
make such a undertaking as
a result the applicant accepted the offer and order was made by the
agreement between the parties, therefore,
there is a casual link
between the representation and the detriment, as such the first
respondent is estopped or barred from doing
the opposite. The
applicant's counsel submitted that the attack on the orders was
irreconcilable with the steps taken by the first
respondent and its
functionaries in giving effect to the orders, those steps, such as
instituting the arbitration order of court,
budgeting for the
erection of the sewerage plant, all show acquiescence in the orders
and their attempt to revisit 2004 application
by criticising the
applicant's founding affidavit for lack of essential averments is
seen as fallacious, neither did the opposing
respondents address the
fact that the first respondent made a formal tender in terms of Rule
34(2) and (5) that constituted the
2005 court order, same it was
fallacious to attack the 2011 order as the thirteenth respondent
submitted that the first respondent's
previous office bearers had no
authority to bind the first respondent with their undertaking. The
applicant contended that answer
to the attack of the 2011 court
order, the applicant's attorney acquired a better copy of the
document that shows that in terms
of Council delegation 0436, the
Council delegated the municipality authority in section 109(2) of the
Municipality Systems Act
, 2000 to compromise or compound any action,
claim or proceedings to the municipal manager, which is what exactly
what the municipal
manager as co-signatory of the undertaking did,
therefore, the opposing respondent's attack on the validity of the
2011orders should
be dismissed.
[72]
The counsel for the applicant further submitted that the respondent's
objections against the 2019 court order
are based on the false
premise as their objection to the 2005 court order, namely that it is
illegal being contrary to what is
provided by the "legal
prescripts", their attack on the validity should fail. It was
further submitted by the counsel
of the applicant that the
respondents as they refer to their tenure of the office as a "new
administrator" they are bound
by the actions and failures of the
first respondent in respect of the orders of 2005, 2011 and 2019,
they are not at liberty to
distance themselves from the said orders
as if they do not exist, they are estopped from denying the validity
of the 2005 order.
[73]
The counsel for the applicant argued that back 2006, 2007, 2009 up to
2020, the first respondent never attacked
the validity of the 2005
court order but executed part of the order relating to indigenous
trees and water reticulation, instituted
proceedings against the
developer as a result of the 2005 order, applied for and obtained an
postponement on 24 November 2009 and
an authorisation which was a
prerequisite for the implementation of the order, and when two civil
claims were instituted against
the first respondent, it never
contested the 2005 and 2011 court orders but paid damages close to R2
000 000.00 and costs to the
applicant.
[74]
The counsel for the applicant submitted that the first respondent
partially implemented the orders by appointing
a consultant,
compiling bid papers and budgeting for the treatment plant to be
erected, the applicant acted accordingly to its
own detriment, as
such the executive mayor and the municipal manager that gave
undertakings in 2011 were acting with actual or
ostensible authority.
It was further argued that the fact that the first respondent did not
oppose the 2019 application also denies
it opportunity to now contest
the validity of orders based on discovery of an agreement dating back
1999 and the existence of which
was fully aware
[75]
The counsel for the applicant further submitted that in addition to
the respondents to being estopped from
claiming that the orders are
invalid, the court should also refer to the doctrine of peremption,
the first respondent will either
had to approbate or reprobate as it
did not challenge the 2005 order, the first respondent had clearly
acquiesced or approbated.
Counsel further argued that the
respondent's application for rescission in terms of rule 42(1) (a)
should fail, in that, if a party
is procedurally entitled to
judgement it cannot be erroneously granted in the absence of another
party, the party that reconcile
itself with the reasonable prospect
that the relief could be granted is not entitled to rescission on
grounds thereof that such
relief was erroneously granted. The
respondents are in wilful default. The counsel relied on the case of
Freedom Stationery (Pty)
Limited and Others v Hassam and Others
2019
(4) SA 459
(SCA).
[76]
The counsel for the applicant further submitted that even in cases
where an applicant is able to make out
a case within the confines of
the rules, the court retains the inherent jurisdiction to refuse the
application for variation or
rescission of judgement, same the
applicant relied to the case of Colyn v Tiger Food Industries
2003
(6) SA 1
SCA - where the court said the following:- "Court
generally expect an applicant to show good cause (a) by giving
reasonable
explanation of his default; (b) by showing that his
application is made bona fide; and (c) by showing the has a bona fide
defence
to the plaintiffs claim which was prima facie has some
prospect of success.
[77]
The counsel for the applicant in his arguments further submitted that
the . respondents did not make a proper
case, apart from the
requirements for rescission of judgement which are not complied with,
the rescission cannot be granted to
the inordinate and unreasonable
delay on the parts of the respondents, apart from the time of delay,
it is clear that, the first
respondent is acquiesced in the order and
that order cannot be rescinded. The applicant relied to various cases
which court also
took into consideration, namely, Dabner v South
African Railways and Harbours
1928 AD 583
at 594;
Tswetele Non
Profit Organisation v City of Tswane Municipal Manager
2007 (6) SA
511
(SCA) at para 10; Nkata v First Rand Bank Ltd and Others 2014 (2)
412 (WCC) par 30 and 31; Venmop 275 (Pty) Ltd and Another v Clever/ad
Projects (Pty) Ltd and Another
2016 (1) SA 78
(GJ) at para 25 and
SARS v CCMA
2017 (1) SA 549
(CC) [at 26-28] and Promedia Drukkers en
Uitgewers (Edms) Bpk v Kaimowitz
1996 (4) SA 411
(C).
[78]
It was further argued by the applicant's counsel that the purported
invalidity of orders, as based on the
ground that the "governing
prescripts" allegedly do not allow the first respondent to pay
for the installing of engineering
services (which the sewerage plant
is) in a private development is incorrect, as this not a capital
project, the first respondent
can be liable for such services as
envisaged in terms of s116 to 118, 120 and 122 of the Town Planning
and Townships Ordinance
15 of 1986. The counsel pointed out that the
provision of engineering services are extremely important
requirements in the development
of a township as envisaged in terms
of s67,70, 97 and 113 of the Town Planning and Townships, it is in
these circumstances that
it is important to the constitutional order
that the Legislature and the Executive in every sphere are
constrained by the principle
that they may exercise no power and
perform no function beyond that conferred upon, as it is the
constitutional duty of the first
respondent to ensure that townships
are developed in accordance with the prescripts of the law, and if it
fails to do so, the first
respondent is obliged to rectify its own
mistake either willingly, or if unwillingly, then in terms of a
perfectly law order of
court. The counsel relied in these cases
Fedsure Life Assurance Ltd v Greater Johannesburg Transitional
Metropolitan Council 1999
(l) SA 374 (CC) at para 58 and Minister of
Public Works and Others v Kylami Ridge Environmental Association and
Another (Mukhawevho
Intervening)
2001 (3) SA 1151
(CC)
[79]
The counsel for the applicant in his closing arguments submitted that
the proper reading of the "governance
prescripts" (the
service agreement, the council authorisation and the applicable
ordinance) as well as the papers in the 2004
application and the 2005
order, make it clear that the 2005 order as well as consequent orders
based thereon, are valid, and the
2011 order is valid because the
undertaking given by the executive mayor and the then municipality
fall squarely within the delegated
authority and powers of the
latter. The first respondent's counter-application must be dismissed
with costs, including costs of
two counsel.
[80]
In reply, the counsel for the opposing respondents submitted that
first respondent has partially complied
with the 2005 order but could
not be competent enough to perform the developer's duties because of
governing prescripts. However,
the respondents denied that there is a
causal link with the detriment and the first respondent is estopped
in rescinding the orders,
it was argued by the counsel that the
impugned agreement cannot be validated through the doctrinal device
of estoppel, as the peremptory
provisions of the governing
prescripts, including s 19 of MFMA were not complied with,
[81]
The counsel for the respondents submitted that the applicant contends
that steps taken by various administration
of the first respondent
constitute pre-emption, it thus disentitled first respondent from
changeling the validity of court order,
it is in these circumstances
where the court can use its discretion to overlook or disregard the4
acquiescence where broader interest
of justice would otherwise not be
served, dictum applies to this matter, as the new administration
decided to challenge the validity
of the court orders after
considering governing prescripts, services agreement based on legal
advice, if the court does not exercise
its discretion, the first
respondent will be prejudicially compelled to spend much needed
public funds on private estate and prohibited
from exercising its
constitutional rights and obligations.
[82]
The counsel for the respondents submitted that the Constitutional
Court rejected the argument that delay
in challenging the lawfulness
of the agreement disentitles an applicant to relief, and held that:-
"Whilst I agree with
the criticism levelled against the Municipality for its inordinate
delay in taking steps to deal with
its conduct in concluding an
invalid agreement, this has no bearing on the eventual outcome of the
matter. The unexplained long
delay in reviewing its unlawful conduct
does no/ cure the invalidity and unenforceability of the agreement.
Inexcusable as it is,
the long delay and failure by the Municipality
too review its unauthorised conduct also does not automatically
deprive it of the
option of a reactive challenge. Since the Merafong
and Tasima, it is now clear that a reactive challenge " should
be available
where justice requires it to be" and that an organ
of the state is "not disqualified from raising a reactive
challenge
merely because it is an organ of state"
[11]
[83]
The applicant for the respondents further submitted on its reply that
in this the matter, the respondents
do not have to show good cause,
in the sense of an explanation for the first respondent's default and
a bona.fide defence, the
counsel relied to the case of Great Kei
Municipality v Danmist Properties CC,
2004 (4) All SA 298
page
301-302.
[84]
The counsel for the respondents further argued and relied to the
authorities, namely, De Sousa v Kerr
[12]
where it was held that: -
'·De Wet and
Others v Western Bank Lid
1977 (4) SA 770
(I) at 777, if the
requisites of Rule 42(1) are present, a Court is empowered to grant
the relief of setting aside a judgement,
notwithstanding the fact
that good cause is shown. As 1 understand the judgement this would
include good cause in regard to default.
If the learned trial judge
granted the judgement on the basis that the defendant personally knew
of the trial date and yet had
not appeared, it might well be that the
judgement was erroneously granted. This might be argued as a matter
of probability and,
while a Court should not decide probabilities on
paper, I certainly cannot determine probabilities on unresolved
disputes of fact.
[85]
Other authorities relied upon were the case of Phakathi v Ndlovu and
Others
[13]
the counsel for the
respondents argued that these authorities are in good in law.
[86]
The counsel for the respondent further submitted that the applicant
contends that the installation of the
sewer system is not a capital
project, the first respondent can be liable for such services as
envisaged in terms of s16 to 118,
120 and 122 of the Town Planning
and Townships Ordinance 15 of 1986.
[87]
The counsel in reply argued that sl 9 of MFMA does apply to the
transaction under consideration in this matter,
as it prohibits an
agreement to procure a capital asset in the absence of approved
budget and without Cow1cil's resolution, therefore,
any agreement
entered into by the first respondent is impermissible, the counsel
submitted to this court, such an argument were
not in papers before
this court, it is tantamount to raising an argument from the bar, as
such our courts do not allow that and
counsel supported its argument
by relying :
[88]
To the case of Swissborough Diamond Mines (Pty) Ltd and Others v
Government of the Republic of South Africa
and Others
1999 (2) SA 279
(T) 324 F-G on the impermissibility of raising points contained only
in annexures, it was held that:-
"Regard being had to
the function of affidavits; it is not open to an applicant or
respondent to merely annexe to its affidavit
documentation and to
request the Court to have regard to it. What is required is the
identification of the portions thereof on
which reliance is placed
and an indication of the case which is sought to be made out on the
strength therefore If this were not
so the essence of our established
practice would be destroyed. A party would not know what case must be
met"
It
is on these basis, that the counsel submit that the
counter-application stands to be granted.
[89]
The counsel for the applicant on its arguments replied and submitted
to this court that there is no proper
case made out for the
rescission of court orders, the agreement between the parties is
about essential services, the respondent
cannot withdraw that now as
steps were taken and budgeted for because of Orders , the whole issue
that there is no proper authority
is simply incorrect, the main
concern the 2005 is in existence, the first respondent cannot run
away from installing those sewerage
plants. The counter application
must be dismissed.
[90]
As a general rule, a court has no power to set aside or alter its own
final order, as opposed to an interim
or interlocutory order. The
reason for this age old rule are twofold. First, once a court has
pronounced a final judgement, it
becomes
functus officio
and
its authority over the subject matter has ceased. The second reason
is the principle of finality of litigation expressed in
the maximum
interest rei publicae ut sit finis litium
; it is in the best
interest that litigation be brought to finality.
See Firestone
South Africa (Pty) Ltd v Genticuro AG
1977 (4) SA 298
(AD) at 306F-G
and 309A, Minister of Justice v Ntuli
[1997] ZACC 7
;
1997 (3) SA 772
(CC) paras 22
and 29; Zondi v MEC, Traditional and local Government Affairs, and
Others
2006 (3) SA 1
para 28.
[91]
There are exceptions to this rule. I am encouraged by the case of
Freedom Stationery (Pty) & Others v
Hassam & Others , on 465,
at [17] where it was stated that the requirements for relief under
these exceptions depend on whether
the judgement was given on merits
of the disputes between the parties after evidence had been led or
whether the order was made
in default of appearance of the party that
seeks to have it rescinded. In respect of the first category the test
is stringent,
such judgement can only be set aside on the ground of
fraud or, in exceptional circumstances, on the grounds of Justus
error or
the discovery of new documents. See
Childerley Estate
Stores v Standard Bank of SA Ltd
1924 OPD 163
at 168 and De Wet &
others v Western Bank Ltd
1979 (2) SA 1031
(A) at 1040E-1041B.
[92]
In the present case, the respondents submitted to this court that at
the time the 2005 order was granted,
the court was unaware of the
facts and the governing prescripts, that the first respondent was
obliged to comply with empowering
provisions relating to sections
118(1)(a) and (b), s 118 (2)(a) and s 119(1) Ordinance, the Notice
and the Services Agreement,
s1(c) of the Constitution, s19(1)(a) of
the MFMA and the SCM policy, and should the court that granted the
order was aware, it
would have seen that the obligations which it
imposed on the first respondent in terms of services agreement
violated the governing
prescripts the applicant failed to disclose
the ordinances, material facts in the 2004 application, the applicant
failed to disclose
in its founding affidavit the duties and
responsibilities of the first respondent and those of the developers
that arise from the
development of private estate such as Kosmos
Ridge., the orders were issued without determination of the merits,
[93]
Based essentially only on these allegations, the respondents claimed
that 2005, 2011 and 2019 orders granted
against the first respondent
are invalid, this matter falls under the exceptions to the general
rule that advocates for finality
of orders, The applicant disputes
these allegations on the basis that the first respondent was legally
represented by its erstwhile
legal representative who made an offer
of settlement on its behalf, therefore, the respondents cannot attack
the validity of 2005
order.
[94]
This court took into consideration of the fact that at the time this
2005 order was granted, the services
agreement and its governing
prescripts were in existence, in the fact that the first respondent
being the organ of the state being
the party affected in these
proceedings, the question as invoked in paragraph [25] of
Freedom
Stationery (Pty) & Others v Hassam & Others
, is whether
the party that obtained the order was procedurally entitled thereto.
If so, the order could not be said to be erroneously
granted in the
absence of the affected party. An applicant would be procedurally
entitled to an order when all affected parties
were notified of the
relief that may be granted in their absence, the relief need not
necessary be expressed stated. In my view
it suffices that the relief
granted can be anticipated in the light of the nature of the
proceedings, the relevant disputed issues
and the facts of the
matter.
[95]
In this regard it would be useful to enquire whether the relief could
have been granted without the determination
of the merits, If so, the
steps the affected litigant took to protect its interests by joining
the fray, ought to count for the
court to rescind its judgement under
Rule 42 (1) (a), in these proceedings the first respondent's official
participation entitles
the first respondent to relief under Rule
42(1)(a) mero meto it accords with fundamental principle of finality
of litigation. See
Ex parte Mason
1981 (4) SA 648
(d) at 651 C-D, it
is my view that the relief was indeed granted without the
determination of the merits, the court made an error
in law by
granting the order that was unenforceable in terms of the governing
prescripts as discovered in the services agreement,
in deciding
whether the judgement was granted erroneously, the court confined
itself to the records of the proceedings. It is clear
that the judge
was not aware of the existing governing prescripts which precluded
the granting of the judgement and which have
induced him, if he had
been aware of them, not to grant judgement.
[96]
It is trite that an order of court law stand still until set aside by
a court of competent authority, until
set aside, the court order must
be obeyed, despite whatever reservation one might have, it is my view
that the 2005 order if it
is allowed to stand in its present format
will cause grave injustice to the first respondent as certain orders
are unenforceable,
no determination on merits, the fundamental values
of constitutional democracy prevent organ of the state or public
official to
act contrary or beyond powers as laid down by the law, In
S v Sat paragraph 58 Nicholls AJ said:-
"there may be
exceptional cases where there is need to remedy a patently unjust and
erroneous order and no changed circumstances
exist, however
expansively interpreted, in those circumstances a court may exercise
its inherent power in terms of section 173
to regulate its own
process in the interest of justice".
[97]
In this case at hand the respondents in its counterclaim did seek an
order declaring the 2005, 2011 and 2019
orders invalid and be set
aside as they were granted in contravention of governing prescripts.
The respondents in its counter application
then relay merits for
determination, this court need not to repeat the averments as alluded
in this judgement, as it was established
by the respondents that the
Court orders cannot be compiled with without contravening the
governing prescripts and thus falling
foul of the law. Their
application relied on the case of Merifon (Pty) Ltd v Greater Leteba
Municipality and Another (1112/2019)
[2021] ZASCA 50
(22 April 2021),
for the relief it seek. I am persuaded by the Merifon's case decision
in that no court can compel a party to flout
the law and, more
fundamentally, the principles of legality which is the cornerstone of
our constitutional democracy, and sight
should never be lost of the
fact that in exercising their judicial functions, courts are
themselves constrained by the principle
of legality,
[98]
From the above, in terms of section 173 of the Constitution, this
Court has inherent power to protect and
regulate their own process in
the interest of justice, in this present case, the claim for
constitutional issue was raised, in
order for that constitutional
issue to arise, the claim advanced must require the consideration and
application of some constitutional
rule or principle in the process
of deciding the matter
[14]
[99]
In relation to first respondent's plea and counterclaim the applicant
denies that the orders are unenforceable
and put the first respondent
to the proof of its allegations, the applicant further denied that
the section 19 of MFMA is applicable
as this was not a capital
project, the first respondent can be liable for agreement procured
through Supply Chain Management System
in a periodical review, it is
the constitutional duty of the first respondent to ensure that
townships are developed in accordance
with the prescripts of the law,
I am encouraged by the case of Valor IT, at para 74, in that the
Court considered the effect of
an unlawful settlement agreement and
was correctly rescinded by it. Because in signing the settlement
agreement that was made an
order of the court had committed the
Department to a liability for which no money had been appropriated
and thus in contravention
inter alia of PMA. In casu the counsel for
the respondents submitted that facts on Valor IT are similar to this
matter, as previous
administrators had committed the first respondent
to liability for which it had no funds and also to the erection of
project in
contravention of governing prescripts, that resulted to
the first respondent to be in administration after being followed by
civil
suites.
[100]
Is it in the interest of justice to grant order to rescind the
orders, that cause grieve prejudice to the first respondent,
it was
argued that the 2005 Court order declaring the first respondent to
erect and/or install a sewerage reticulation within a
private estate
and its own costs does not accord with the law, the first
respondent's powers and functions are constrained by the
course and
scope of these prescripts as the doctrine of legality and the rule of
law lie at the heart of Constitution. The respondents
relied on the
case of Merifon (Pty) Ltd v Greater Letaba Municipality and Another
which stated that the exercise of public power
must therefore comply
with Constitution and the doctrine of legality. The respondents
argued that the court orders are contrary
to the governing prescripts
and not accord with the constitution as they are unlawful, invalid,
unenforceable.
[101]
It is my view that it will be in the interest of justice to grant
order to rescind the 2019 Order. It must be
borne in mind that from
on set and in terms of Services Agreement, the applicant and first
respondent did not have an agreement,
they are bound by the developer
to establish the township. Only the developer and first respondent
are bound by the service agreement.
The developer failed its
obligation to develop the township as agreed, the applicant
instituted legal proceedings against the first
respondent enforcing
it to fulfil the developer's obligation under the service services
agreement.
[102]
The first respondent could not comply with its statutory obligation
to enforce such fulfilment. the interest of justice
and policy
considerations applicable to this matter warrants that this court
should rescind the 2019 court order, regardless of
the steps that
might have been previously taken by the Administration governed by
the municipality at the time, its long delay
and failure to review
its unauthorised conduct does not deprive it of the option of a
reactive challenge. I am of the view that
the Mapulane's affidavit
make a case for setting aside of the 2005 and 2011 orders. Since
Merifong and Tasima
[15]
it was
clear that a reactive challenge should be available where justice
requires it to be
[16]
and that
an organ of the state is not disqualified from raising a reactive
challenge merely because it is an organ of the state
[17]
[103]
I am satisfied with the findings of the Supreme Court of Appeal and
Constitutional Court of Appeal in Mertfon supra
it would be in the
interest of justice that the 2019 order be rescinded, on the basis of
the doctrine of legality in that "no
court can compel a party to
flout the law and, more :fundamentally, the principle of legality
which is the cornerstone of our constitutional
democracy".
CONCLUSION
[104]
In the result, I make the following order:
104.1
Condonation for late filing of rescission of 2019 order is granted.
104.2
The applicant's application for contempt of court is dismissed with
costs.
104.3
The respondent's application for rescission of orders in terms of
Rule 42(1)(a) is granted.
104.4
The 2019 Order is set aside.
104.5
The respondents must file a plea to the applicant's particulates of
claim within 20 (twenty) days of this
order. .
B.F
MNYOVU
ACTING
JUDGE OF THE HIGH COURT
APPEARANCES:
Counsel
on behalf of Applicant: Adv
AJ Louw SC
Instructed
by:
Adv M.E. ACKERMANS
Mr Christo Van Der
Len Dekker Attorney
Counsel
on behalf of Respondents: Adv
L. Kutumela
Instructed
by:
Adv N Tshabalala
Gildenhurd Kalatji Inc
Attorneys
Date
heard: 12
October 2022
Date
of Judgement: 27
March 2023
[1]
Secretary of the Judicial Commission of inquiry into Allegations of
State Capture, Corruption and Fraud in the Public Sector
including
Organs of the State v Zuma and Others 2021(5) 327(CC). para 1
Khampepe ADCJ [SJCI v Zuma]
[2]
Arangies t/a Auto Tech v Quick Build
2014 (1) NR 187
(SC) at para 5
[3]
Pheko and others v Ekurhuleni City
2015 (5) SA 600
(cc) paragraph 32
[4]
Pheko // para 31and SJCI v Zuma para 61
[5]
Pheko // para 30:
[6]
Pheko // para 30.
[7]
Federation of Governing Bodies of South African Schools v MEC for
Education. Gauteng
2016 (4) SA 546
at 637C-D; and
SJCI
v Zuma
para 61
[8]
Lodhi 2 Properties Investments CC and Another v Bondev Developments
(Pty) ltd 2007 (6) 87
[9]
Naidoo and Another v Mahlala No and Others 2012 (1) SA 143
[10]
Great Kei Municipality v Danmist Property CC
[2004] All SA 298
E
[11]
Merifon CC. para 38,39.43 and 45
[12]
[1978] 2 All SA 654
(W) page 657. Hardroad (Pty) Ltd v Oribi Motors
(Pty) Ltd [1977]
[13]
2021 JDR 2728 (GJ) para 21-23
[14]
General Council of the BAR of South Africa v Jiba [2019] ZACC23:
2019
(8) BCLR 919 (CC) at para38.
[15]
18 - Department, of Transport v Tasima (Pty) Ltd [2016]
ZACC39,2017(2) sa622(CC):2017( 1 )OCLR J (CC)
[16]
19 - Merafong above n26 at para 55
[17]
20 - Tasima above n 31 at para 140
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